"Unfortunately Shaun incurred a setback in his recovery from knee surgery that won't allow him to compete in a timely manner," said Steelers general manager Kevin Colbert said in a statement. "Shaun has played a significant role in our success during his time in Pittsburgh. He has been the consummate professional on the field and in our community. We wish he and his family all the best in the future."
The 34-year-old kicker missed all of 2015 after tearing his ACL in the team's first preseason game. He was cut on Friday with a failed physical designation.
Suisham joined the Steelers in 2010 after bouncing around with four other NFL teams. The 12th-year pro owns an 84.1 career field-goal percentage.
Suisham's injury last season led to an unstable kicking situation in Pittsburgh -- one of the most difficult home stadiums for place kickers.
The Steelers first signed Garrett Hartley, who proceeded to injure his hamstring weeks later and miss the entire season. Pittsburgh then traded for Jags veteran Josh Scobee prior to the start of the season. The move blew up in their face, with Scobee missing four of 10 field-goal attempts and an extra point - including missing two field goals in a three-point loss to rival Baltimore Ravens. Scobee was cut after just four games.
Pittsburgh added running back Brandon Johnson, a tryout participant from Penn State, to take Suisham's spot on the roster.